Dutch semiconductor giant ASML Holding NV faces charges in Manhattan federal court for allegedly misleading investors about its financial outlook amid declining global demand and new policies to curb exports of sensitive technology to China. is facing further charges.
Investor Anas Matar, under the guidance of attorneys from Breichmer, Fonti & Auld, is investing in ASML, the world’s largest semiconductor supplier and the only manufacturer of photolithography equipment needed for advanced semiconductor manufacturing. filed a securities fraud lawsuit against
Mattar alleges in a lawsuit filed Monday in the U.S. District Court for the Southern District of New York that management violated securities laws by concealing the severity of ongoing problems within the semiconductor industry and misrepresenting the pace of the industry’s recovery. did. .
“Defendants falsely created the impression that they had reliable information about customer demand and expected growth while downplaying the risks posed by macroeconomic, industry fluctuations, and increased regulation,” the complaint said. .
The lawsuit targets the company, along with Chief Financial Officers Roger Dassen and Christophe Fouquet, and Peter Wennink, ASML’s current and former president and chief executive officer, respectively.
Much of the lawsuit revolved around a November 2022 statement in which ASML estimated the company’s sales would be between 30 billion euros and 40 billion euros by 2025. That outlook was provided before global semiconductor sales began to decline, and before large-scale sales began to decline, Matar said. The Dutch government has restricted exports of semiconductor technology to China, ASML’s main market.
Matar claimed that executives had downplayed these developments in a statement released in January 2024 after the release of ASML’s 2023 financial results. In particular, Matar’s legal team said in an earnings call that then-CEO Wennink told investors that the company was showing “first signs” of recovery in this area and that it expected sales in China to continue into 2024. Kou highlighted that he expects the economy to “continue to perform very well.”
However, Mataru pointed out that ASML’s third quarter bookings were down more than 50% compared to the second quarter. After announcing these results, the company’s new CEO Fouquet explained that the semiconductor industry’s recovery is taking longer than expected. At a subsequent financial results conference, executives revealed that sales in China had declined, according to the complaint.
ASML stock lost 16.3% of its value after the third quarter results were released. After the results were announced, the stock fell a further 6.4%.
The lawsuit largely mirrors claims filed against ASML by Bernstein Litowitz Berger & Grossman, which filed suit against ASML in November on behalf of the City of Hollywood Firefighters Pension Fund.
Representatives for ASML did not immediately respond to a request for comment Friday.
